What Use Cases does Stable Jack offer?

Stable Jack is a protocol that can be built on top of different assets so that it can allow different use cases such as yield trade, yield vs points trade, and yield vs volatility trade.

Here are some examples of how Stable Jack can utilize the collateral assets:

Yield Trade

Yield-Bearing Stablecoins

Yield-bearing stablecoins are the perfect collateral asset for Stable Jack. Investors can access fixed and leveraged yield exposure depending on their risk profile.

• Yield Token holders will earn a fixed yield on stablecoins. This will enable investors to hedge yield volatility risk.

• Volatility Token holders can long the stablecoin yield and earn leveraged returns.

Perpetual DEX Vaults and LP Tokens

Vaults and LP Tokens are money-printer as they earn not just from the collateral asset but also from the trading fees, liquidations, and arbitrage. This makes them a great asset that can be utilized on Stable Jack.

• Yield Token holders will earn a fixed yield on vaults. This will enable investors to hedge yield volatility risk.

• Volatility Token holders can long the vault yield and earn leveraged returns.

Lending Market LP Tokens

Lending protocols often find it challenging to stand out in the market as most can only offer variable yields, and those that provide fixed yields have struggled to achieve product-market fit due to suboptimal user experience, scalability problems, and lack of capital efficiency.

However, similar to yield-bearing stablecoins, Stable Jack can offer yield trade market on lending markets.

• Yield Token holders will earn a fixed yield on LP Tokens. This will enable investors to hedge yield volatility risk.

• Volatility Token holders can long the LP Token yield and earn leveraged returns.

Yield vs Points Trade

Yield-Bearing Stablecoins

This year we have experienced many stablecoin projects taking place, with different methods of collateralization. Most of them by focusing on yield, and points created significant opportunities for investors.

Stable Jack allows investors to access either leveraged stablecoin yield or leveraged points exposure.

• Yield Token holders can access leveraged stablecoin yield with principal protection.

• Points Token holders can access leveraged points exposure with principal protection.

Liquid Staking and Liquid Restaking Protocols

LST and LRTs gained significant attraction as investors wanted to speculate on the token rewards. Stable Jack enables investors to either get leveraged LST yield or leveraged points exposure.

• Yield Token holders can access leveraged yield exposure while maintaining their exposure to the collateral asset.

• Points Token holders can access leveraged points exposure with principal protection.

Lending LP Tokens

Lending protocols run incentive campaigns that mix with points and token incentives. Stable Jack will allow investors to get exposed to either leveraged yield or speculative reward exposure.

• Yield Token holders will earn leveraged yield from LP tokens.

• Volatility Token holders will earn leveraged speculative token rewards or points.

DEX LP Tokens

DEXs run incentive campaigns that mix with points and token incentives. Stable Jack will allow investors to get exposed to either leveraged yield or speculative reward exposure.

Or, as another option, Stable Jack can just offer fixed and leveraged yield on top LP Tokens.

• Yield Token holders can earn a leveraged yield on DEX LP Tokens while maintaining their principal.

• Points Token holders can earn leveraged points or token rewards exposure while maintaining their principal.

Yield vs Volatility Trade

Liquid Staking and Liquid Restaking Protocols

LST and LRT tokens are great collateral assets as they have volatility and yield which can be stripped into two different tokens to allow users to opt for leveraged yield exposure or leverage exposure to collateral assets without liquidation risk.

• Yield Token holders can access leveraged yield exposure on a USD-pegged yield-bearing asset which makes it a valuable collateral asset.

• Volatility Token holders can achieve leveraged long exposure on the collateral asset without liquidation risk or paying any funding fee. This will allow them to beat the price action of the collateral asset in the long term.